House passes Neugebauer’s bill to streamline insurance regulation

Rep. Randy Neugebauer’s (R-Texas) bill that would create a national clearinghouse for insurance agents and brokers to obtain licenses to operate in multiple states passed the House on Tuesday.

“This bill makes it easier for insurance agents and brokers to operate across multiple states so they can better serve their customers,” Neugebauer, the chairman of the House Subcommittee on Housing and Insurance, said.

Redundant, expensive and occasional contradictory requirements currently exist for licensing in multiple states, according to Neugebauer.

“On average, multi-state agents sell insurance in eight states,” Neugebauer said. “That means eight different application, eight different procedures for admittance, eight separate background checks and a multitude of inconsistent standards and duplicative processes.”

The bill, called the National Association of Registered Agents and Brokers, has bipartisan support and 90 cosponsors. It would set up a solitary clearinghouse to be run by the NARAB. Legislative language in the bill would require insurance agents to only need to be licensed twice, once in their home states and once by NARAB, to work in any state.

Neugebauer said improving the licensing process would also boost NARAB competition and improve choices for policyholders.

The House debated the bill for 40 minutes on Tuesday then proceeded to vote. The legislation passed in a 397-6 roll call vote.